Expensive stocks typically earn their valuations through superior growth rates that other companies simply can’t match. The flip side though is that these lofty expectations make them particularly susceptible to drawdowns when market sentiment shifts.
Separating true intrinsic value from speculation isn’t easy, especially during bull markets. That’s where StockStory comes in - to help you find high-quality companies that will stand the test of time. Keeping that in mind, here are two high-flying stocks with strong fundamentals and one facing an uphill battle.
One High-Flying Stock to Sell:
Intel (INTC)
Forward P/E Ratio: 126.7x
Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ:INTC) is a leading manufacturer of computer processors and graphics chips.
Why Do We Steer Clear of INTC?
- Annual sales declines of 5.9% for the past five years show its products and services struggled to connect with the market during this cycle
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 19.7 percentage points
Intel is trading at $134.18 per share, or 126.7x forward P/E. To fully understand why you should be careful with INTC, check out our full research report (it’s free).
Two High-Flying Stocks to Watch:
DigitalOcean (DOCN)
Forward P/S Ratio: 15.6x
Built for simplicity in a world of complex cloud solutions, DigitalOcean (NYSE:DOCN) provides a simplified cloud computing platform that enables developers and small businesses to quickly deploy and scale applications.
Why Does DOCN Catch Our Eye?
- Billings growth has averaged 17.6% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Market share is on track to rise over the next 12 months as its 30.7% projected revenue growth implies demand will accelerate from its two-year trend
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
At $172.50 per share, DigitalOcean trades at 15.6x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Helmerich & Payne (HP)
Forward P/E Ratio: 34x
Operating the largest fleet of super-spec rigs in North America with technology that can drill horizontal wells over two miles long, Helmerich & Payne (NYSE:HP) provides drilling rigs and crews to oil and gas companies that need wells drilled to extract hydrocarbons from underground.
Why Is HP on Our Radar?
- Market share has increased this cycle as its 32.2% annual revenue growth over the last five years was exceptional
- Economies of scale give it some operating leverage when demand rises
- EBITDA profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
Helmerich & Payne’s stock price of $35.45 implies a valuation ratio of 34x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
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